The worst possible system to fund our schools

Saturday, July 13, 2013

Thank you to the Mercury for publishing the guest column in which the editor of The Times Herald of Norristown urges a public outcry from homeowners chanting “We want property tax reform.” Mr. Huskey deserves our praise for his tireless efforts to eliminate the ad valorem tax on real estate, commonly called the school tax, because it is absolutely the worst possible system to fund our schools. The school tax is based solely upon the assessed value of our homes, and is not based in any respect on resources, income, or ability to pay. For those with little or no income the burden of an ad valorem tax is obvious. The tax never goes down — it is certain to keep rising, incessantly. Ad valorem tax is levied on an arbitrary value placed by the government against a non-liquid asset (usually our most precious). It is the most insidious tax of all because it places our homes at risk, and those with the least amount of money are at the greatest risk.

Most of us must sacrifice in other areas to make sure our school taxes are paid and our home is saved for one more year. For many folks, especially those who do not work or who must survive on a fixed income, this annual struggle to pay the school board just a little bit more than last year is the most worrisome part of life. Imagine the joy when the school tax is eliminated! The mental burden will be lifted from our senior citizens allowing them a better life.

Mr. Huskey surely knows there will be no groundswell of homeowners demanding tax reform. Our state representatives and senators certainly have figured that out. Legislators quickly learn that they can skirt the issue by saying how dedicated they are to the cause while at home, but they seem to never do anything about it in Harrisburg. Homeowners desperately need the school tax to be eliminated but they have given up on the General Assembly’s intention or ability to do so.

I asked my state representative to tell me unequivocally whether he supports House Bill 76 or not — “yes or no.” I received two pages of equivocation, talking points, and double talk. He is worried that sales tax will rise from 6 percent to 7 percent. He is worried that personal income tax will rise from 3.07 percent to 4.01 percent. He is worried that HB76 will not be “revenue neutral.” He is worried about loss of local control over “educational matters.” My response is — forget mathematics, forget good accounting practices, forget party or caucus talking points, forget revenue balancing.

Homeowners should tell their legislators, “I am your boss and I am instructing you to immediately eliminate the ad valorem school tax and replace it with whatever funding is necessary. If sales tax must go to 7.5 or 8 percent, then do it. If personal income tax must go to 5 percent or greater, then do it. Leave nothing untouched. Look at every option, because nothing is more important to our senior citizens and our middle class and modest income homeowners. Just Do It Now.”